Investing.com - The euro edged higher against the dollar on Tuesday, but gains were limited as escalating geopolitical tensions between the U.S. and Syria and strong U.S. consumer confidence data underpinned dollar demand.
EUR/USD hit 1.3398 during U.S. morning trade, the highest since Friday; the pair subsequently consolidated at 1.3384, gaining 0.12%.
The pair was likely to find support at 1.3200 and near-term resistance at 1.3408, Friday’s high.
The euro eased back from session highs after data showed that U.S. consumer confidence rose more-than-expected in August, hitting the highest level since January 2008.
The Conference Board said its index of consumer confidence rose to 81.5 in August from an upwardly revised 81.0 in July. Analysts had expected the index to fall to 79.0.
The data eased uncertainty over the timing of a reduction in Federal Reserve stimulus measures after recent weak data releases raised doubts over the strength of the U.S. economic recovery.
Demand for the dollar continued to underpinned as the prospect of a U.S. military strike against Syria’s government sparked widespread risk aversion.
Expectations for a military strike against Syria grew after U.S. Defense Secretary Chuck Hagel said American forces are "ready" to launch strikes if President Obama chooses to order an attack.
On Monday, U.S. Secretary of State John Kerry said there was “undeniable” proof that the Syrian government had used chemical weapons against civilians.
The euro remained supported after a report on Tuesday showed that the closely watched Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
The single currency was higher against the pound, with EUR/GBP up 0.30% to 0.8610, but remained sharply lower against the stronger yen, with EUR/JPY down 1% to 130.36.
EUR/USD hit 1.3398 during U.S. morning trade, the highest since Friday; the pair subsequently consolidated at 1.3384, gaining 0.12%.
The pair was likely to find support at 1.3200 and near-term resistance at 1.3408, Friday’s high.
The euro eased back from session highs after data showed that U.S. consumer confidence rose more-than-expected in August, hitting the highest level since January 2008.
The Conference Board said its index of consumer confidence rose to 81.5 in August from an upwardly revised 81.0 in July. Analysts had expected the index to fall to 79.0.
The data eased uncertainty over the timing of a reduction in Federal Reserve stimulus measures after recent weak data releases raised doubts over the strength of the U.S. economic recovery.
Demand for the dollar continued to underpinned as the prospect of a U.S. military strike against Syria’s government sparked widespread risk aversion.
Expectations for a military strike against Syria grew after U.S. Defense Secretary Chuck Hagel said American forces are "ready" to launch strikes if President Obama chooses to order an attack.
On Monday, U.S. Secretary of State John Kerry said there was “undeniable” proof that the Syrian government had used chemical weapons against civilians.
The euro remained supported after a report on Tuesday showed that the closely watched Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
The single currency was higher against the pound, with EUR/GBP up 0.30% to 0.8610, but remained sharply lower against the stronger yen, with EUR/JPY down 1% to 130.36.